Building a Value Creation Machine & Scaling a Private Equity Firm

Why It Matters

By proving that a focused, owner‑motivated sourcing strategy and strong operational discipline generate outsized returns, Pacific Avenue’s model guides private equity firms aiming to scale internationally while preserving their competitive edge.

Key Takeaways

• Focus on “unnatural owners” drives Pacific Avenue’s deal sourcing
• Prioritize 2-3 core initiatives to unlock portfolio value
• Align incentives with execution to motivate management teams
• Europe expansion chosen for adjacent markets and talent fit
• Complex carve‑outs require dedicated ops team and long timelines

Summary

The Raw Selection Private Equity Podcast episode spotlights Pacific Avenue Capital’s strategy for building a "value creation machine" and scaling its operations beyond the United States. Founder Chris Snise explains that the firm targets businesses owned by "unnatural owners"—individuals or corporations ready to divest—allowing Pacific Avenue to source unique carve‑out opportunities and apply its operational playbook. Key insights revolve around disciplined prioritization, incentive alignment, and a hands‑on operating model. Snise stresses narrowing focus to two or three high‑impact initiatives, then rewarding teams that execute those plans. This framework, combined with a dedicated operations group, enables the firm to tackle complex transactions that many peers avoid. A concrete example is the Total Energy carve‑out in France, a multi‑product asset lacking a management team. Pacific Avenue hired over 50 staff, rebuilt sales and finance systems, and spent more than a year both negotiating the deal and standing up the new company. The effort illustrates the firm’s willingness to invest time and resources for differentiated returns. The broader implication is that a niche, owner‑centric sourcing thesis, paired with rigorous execution and cultural consistency across geographies, can fuel growth for mid‑market private equity firms. Pacific Avenue’s deliberate Europe rollout—anchored in talent, adjacent market dynamics, and a replicated operating model—offers a template for firms seeking cross‑border expansion without diluting their core advantage.

Original Description

🎧 Episode Summary:

In this episode, Alex Rawlings speaks with Chris Sznewajs of Pacific Avenue Capital Partners about building a private equity firm focused on complex corporate carve-outs and businesses owned by “unnatural owners.” Chris shares how Pacific Avenue identifies overlooked assets, drives value through operational focus, and recently expanded into Europe with a team-first approach.

He dives into the lessons from building out their Paris office, the firm’s unique deal sourcing strategy, and a case study involving a complex carve-out from Total Energy. Chris also unpacks their value creation model, why they invest heavily in operational talent, and how they maintain culture across borders.

⏱️ Timestamps:

00:00 – Intro to Chris & Pacific Avenue

01:28 – Key mistakes in PE & portfolio strategy

03:52 – Why Europe? Lessons from expansion

05:47 – Building and integrating cross-border teams

10:57 – Defining “complex transactions”

12:24 – Total Energy carve-out case study

15:17 – Proprietary sourcing via corporate relationships

17:25 – Investing in ops: value creation strategy

20:16 – How their ops team is structured

22:45 – Chris’s interests & offer to connect

💡 Key Takeaways:

Focus on carve-outs and “unnatural owners” enables deep value creation.

Expansion to Europe was led by people, not just strategy.

A proprietary sourcing approach is key in competitive processes.

Ops team = generalists with deep business acumen who partner with management.

Carve-outs require patience, resources, and a consistent strategy.

Raw Selection partners with Private Equity firms and their portfolio companies to secure exceptional executive talent. We focus on de-risking executive recruitment through meticulous search and selection processes, ensuring top-tier performance and long-term success.

🔗 Connect with Alex Rawlings on LinkedIn: https://www.linkedin.com/in/alexrawlings/

🌐 Visit Raw Selection: www.raw-selection.com

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